Bitcoin drops below $50k despite miners reserve hitting six-month high

Bitcoin miners, Bitcoin drops below $50k despite miners reserve hitting six-month high

Key Takeaways:

  • Bitcoin miners reserve hit six-month high.
  • Despite this Bitcoin price drops below $50,000 on Christmas day.
  • Mass exodus of miners from China over crypto crackdown in 2021.

Christmas came with unstable prices in the crypto market as Bitcoin dropped below $50,000 despite good news from Bitcoin miners.

According to On-chain data, Bitcoin miners’ reserves have increased since June and have tapped a new six-month high.

This comes weeks after CoinChapter reported that Bitcoin miners’ reserves hit its highest level in 2021.

CryptoQuant reveals that in June 2021, Bitcoin miners in their number disposed significant portions of their holdings in a relatively short period leading to a catastrophic effect on the cryptocurrency’s price.

However, after that time, miners have changed their stance and started to HODL more.

Following a few months of keeping relatively steady holdings, their positions started to increase in early December. Consequently, miners’ inventory balance has now tapped a new six-month high.

Bitcoin miners, Bitcoin drops below $50k despite miners reserve hitting six-month high
Chart showing Bitcoin miners reserve as it tops six-month high. Source: CryptoQuant.com

The analytic’s firm asserted that they are still “very bullish,” which is supported by the fact that miners now hold more Bitcoin compared to when the asset peaked at $69,000 in November.

Another bullish signal by CryptoQuant analysts shows that larger entities have started to withdraw substantial quantities of BTC from centralized exchanges. The current landscape is “very similar” to September when Bitcoin spiked by 70% in a matter of weeks.

Bitcoin miners, Bitcoin drops below $50k despite miners reserve hitting six-month high
Chat showing Bitcoin accumulation level from centralized exchanges. Source: CryptoQuant.com

2021, Adventurous year for Bitcoin miners

Apart from their holdings, miners experienced an adventurous 2021. The year began on a very positive note as Bitcoin price was appreciating in the first few months. However, the situation changed when China reiterated its ban on anything crypto and began cracking down on miners.

China, formerly housing over 60% of the BTC hash rate at that point, pushed them all away. Consequently, they shut down their machines while looking for a new place to settle. This was approximately when the big June sell-off took place.

As miners were finding new homes, mainly in the Western hemisphere, the hash rate recovered after the massive mid-year dump.

Bitcoin price drops below $50,000 despite bullish pointers

Amidst miners’ activity and analysis by experts, Bitcoin’s price has failed to hold still above $50,000. Days before Christmas, the primary cryptocurrency had dropped to $48,000 after failing to overcome $50,000. However, the bulls came to play at this point and pushed the asset north.

Bitcoin started to add value rapidly and surged above $50,000 neared $52,000 on Christmas day.

Bitcoin miners, Bitcoin drops below $50k despite miners reserve hitting six-month high
Bitcoin price chart over the past 5 days as price rises and fall below $50,000. Source: TradingView.com

However, it failed to continue upwards and started to lose value gradually. Earlier today, it dipped below $50,000 and at press time trades at $49,984.

Its market capitalization is just under $950 billion.

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Bitcoin miners, Bitcoin drops below $50k despite miners reserve hitting six-month high

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